The global industrial poultry supply chain is a complex and highly integrated structure, dominated by a small number of multinational companies that manage and control most of the production and distribution of meat and eggs worldwide.
Understanding this pyramid is essential to understanding the resulting benefits that consumers derive from this supply chain, both in terms of accessibility (in the sense of constant availability) and low cost of poultry meat and related products.
There are three fundamental levels
- genetics
- production and processing
- egg production
—-
The Summit of Genetics (Primary Breeders)
This is the initial and most strategic stage of the supply chain, where everything begins and where very few companies worldwide operate, developing and selling pure genetic lines of chickens and hens.
Their work determines the efficiency, growth, and productive characteristics of animals raised around the world.
Key companies:
- Aviagen is the world leader in broiler (meat) chicken It owns brands such as Ross and Arbor Acres, whose genetic lines are used by billions of chickens every year. It develops and selects breeding chickens (“grandmothers” and “grandfathers”) that are sold to global hatcheries. Their work is crucial to production efficiency, which consists of growth rate, feed conversion, meat yield, and disease resistance.
- Cobb-Vantress is the other global giant in broiler chicken genetics, a direct competitor of Aviagen. It develops and distributes genetic lines of broiler breeders (such as the Cobb 500) with a similar focus on performance and efficiency.
- Hy-Line International is the world leader in genetics for laying hens (egg production). Their lines are selected for high egg productivity, shell quality, and feed efficiency.
- Lohmann Breeders is another leading company in laying hen genetics, with several specialized lines for various types of production and egg color.
Why are these companies at the top?
The few companies that control most of the poultry genetics industry owe their position at the top to their extreme specialization in research. Without their breeding stock, the modern poultry industry would not exist or would be much less efficient. Their massive investments in research and development (animal genetics, biotechnology, genomics) and their global impact on billions of animals each year place them at the top of the supply chain that ensures a continuous supply of meat and eggs worldwide.
—-
The top of meat production and processing
(vertical integrators)
This phase involves the rearing, slaughtering, and processing of broiler chickens. It is characterized by strong vertical integration, where large groups control several—and sometimes all—stages of production, from chick to final product.
Key companies operating in this phase at a global level:
- JBS S.A. (Brazil) – Often cited as the world’s largest meat producer (poultry, beef, pork), with an extensive global network.
- Tyson Foods (United States) – One of the largest poultry producers in the US and a major global player with a strong retail market presence.
- BRF S.A. (Brazil) – Another Brazilian giant, among the world’s largest exporters of chicken meat.
- Pilgrim’s Pride Corporation (United States) – A major producer in the United States and Europe, part of the JBS group.
- Wen’s Food Group (China) – The largest poultry producer in Asia, dominant in the vast Chinese domestic market.
- Cargill (United States) – An agricultural and food conglomerate with significant operations in the poultry sector.
Key companies in Italy – examples:
- AIA (Veronesi Group) – The leading Italian operator, with complete integration from feed production to breeding, slaughtering, and distribution.
- Amadori – Another large Italian group with extensive integration and a strong national presence.
- Fileni – An important Italian company with significant growth and a focus on organic and wellness products.
Why have these large companies risen to the top of the sector?
- They are structured with extreme vertical integration – They control every stage of the value chain (from breeding or purchasing chicks to feed production, farming, slaughtering, processing, packaging, and distribution). This ensures maximum efficiency, quality control, and cost reduction.
- They build economies of scale – Operating on a gigantic scale, they achieve very low unit costs, making them extremely competitive.
- They are global in scope – They have subsidiaries and operations in numerous countries, allowing them to serve different markets, mitigate regional risks, and exploit export opportunities.
- They invest continuously in technology and R&D – Their size allows them to make massive investments to improve food efficiency, plant automation, and processing techniques.
- They dominate the market – Their size and reach make them essential suppliers to large supermarket chains, fast food outlets, and the food industry worldwide.
The stages of meat production
Hatcheries
They receive fertilized eggs from breeders (derived from Aviagen/Cobb genetic lines) and incubate them to hatch chicks.
Rearing
The chicks are transferred to farms (often through “soccida” contracts with farmers, who raise the animals on behalf of the integrated company) where they are fed specific feed according to pre-established guidelines to allow growth in close relation to the genetics for which they were selected.
Slaughter and processing
At the end of the cycle (typically 30-60 days, depending on the desired weight), the chickens are slaughtered in highly automated plants, and the meat is processed into specific cuts or processed products.
Packaging and distribution
The meat is packaged and distributed to supermarkets, restaurants, canteens, and food industries.
—-
Egg production (laying hens)
This branch focuses on raising chickens specifically for the production of eggs for consumption. Here too, efficiency and specialization are key.
Key types of companies (globally)
Large vertical integrators (similar to those in the meat industry)
Often, the same groups that produce meat also have divisions dedicated to egg production or related activities.
Specialized egg producers
Companies focused exclusively on egg production, often with different types of farming (cage, free-range, outdoor, organic).
Stages of egg production
Hatcheries
They receive fertilized eggs from laying breeders (Hy-Line, Lohmann) and incubate only females (male chicks from laying hens are not genetically suitable for meat and are managed in different ways, now also with the aim of avoiding their slaughter).
Poultry rearing
Young hens are reared until they reach sexual maturity (approximately 16-18 weeks).
Laying hen rearing
The hens are transferred to rearing facilities where they lay eggs. There are several systems:
- Enriched cages – In the EU, conventional cages have been banned since 2012. Enriched cages offer more space and equipment for welfare.
- Barn-laid – The hens move freely within barns.
- Free-range – The hens have access to outdoor areas.
- Organic – Farms with even stricter standards on space, feed, and outdoor access.
Collection, selection, and packaging
Eggs are collected, cleaned, selected for quality and size, and packaged for distribution.
Egg production for consumption: the key players
It is structured in these phases with these players:
- Genetic origin – Laying hens come from genetic lines developed by companies such as Hy-Line International and Lohmann Breeders, selected to maximize egg production and quality.
- Rearing – The hens are reared in different systems (enriched cages, free-range, organic) which influence animal welfare and the final price of the product.
- Collection and distribution – Eggs are collected, sorted by quality and size, packaged, and distributed to consumers through large retailers, restaurants, or the food industry.
From producer to consumer
Both meat and eggs reach consumers through various channels:
- Large-scale retail trade (LSR) – Supermarkets, hypermarkets.
- Catering (Ho.Re.Ca.) – Restaurants, hotels, catering.
- Food industry – For the production of processed foods (e.g., cold cuts, ready meals, baked goods containing eggs).
- Direct channels – Direct sales from farms, local markets (smaller share).
This highly integrated and specialized structure allows the poultry sector to be one of the most efficient and productive in the world, providing meat and eggs to billions of people every day.
—-
In summary, the poultry supply chain is a sophisticated and interconnected network, where a few dominant players at each stage, from genetics to processing, ensure that poultry products are widely available and affordable to consumers around the world.
